BILL NUMBER: SB 565	AMENDED
	BILL TEXT

	AMENDED IN SENATE   APRIL 26, 1999

INTRODUCED BY   Senator Costa

                        FEBRUARY 19, 1999

   An act to add Section 14669.7 to the Government Code, relating to
state property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 565, as amended, Costa.  State facilities:  Department of
Transportation.
   Existing law generally authorizes the Director of General Services
to hire, lease, lease-purchase, or lease with the option to purchase
any real or personal property for the use of any state agency, if
the director deems the hiring or leasing is in the best interest of
the state.
   This bill would authorize the director to purchase, exchange, or
otherwise acquire real property and construct facilities within the
County of Fresno for use by the Department of Transportation and
other state agencies.  The State Public Works Board would be
authorized to issue revenue bonds, negotiable notes, or negotiable
bond anticipation notes to finance all costs associated with
acquisition, design, and construction of the facilities.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14669.7 is added to the Government Code, to
read:
   14669.7.  (a) The director may purchase, exchange, or otherwise
acquire real property and construct facilities, including any
improvements, betterments, and related facilities, within the County
of Fresno pursuant to this section, for use by the Department of
Transportation and other state agencies.  The department may enter
into a lease-purchase, or a lease with an option to purchase the
facilities.  The department shall acquire the facility on a site that
permits future expansion of the facility authorized by this section,
if evaluations of future workload indicates that future expansion of
the facility may be warranted.
   (b) The State Public Works Board may issue revenue bonds,
negotiable notes, or negotiable bond anticipation notes pursuant to
Chapter 5 (commencing with Section 15830) of Part 10b of Division 3
to finance all costs associated with acquisition, design, and
construction of office and parking facilities for the purposes of
this section.  The State Public Works Board and the department may
borrow funds for project costs from the Pooled Money Investment
Account pursuant to Sections 16312 and 16313.  In the event the bonds
authorized by the project are not sold, the Department of
Transportation shall commit a sufficient amount of its support
appropriation to repay any loans made for the project from the Pooled
Money Investment Account.  It is the intent of the Legislature that
this commitment shall be included in future Budget Acts until all
outstanding loans from the Pooled Money Investment Account are repaid
either through the proceeds from the sale of bonds or from an
appropriation.  
   (c) The net present value of the cost to acquire and operate the
facilities authorized in this section may not exceed the net present
value of the cost to lease and operate an equivalent amount of
comparable office space over the same time period.  The department
shall perform this analysis and shall obtain interest rates, discount
rates, and consumer price index figures from the Treasurer.  For
purposes of this analysis, the department shall compare the cost of
acquiring and operating an equivalent amount of comparable office
space that will no longer need to be leased because the agencies will
no longer occupy currently leased facilities when they occupy the
proposed facilities.